$10 billion wiped from local companies as resources take a back seat
The value of Queensland’s listed companies dropped by $10 billion in the June quarter as consumer-related businesses took over from energy and resources as the dominant sector, according to a study by Deloitte.
Consumer confidence is near record lows (Photo: ABC)
The Deloitte Queensland Index showed the value of the local companies fell to $111.5 billion after 82 per cent of all the state’s ASX-listed companies fell in value. Only 25 companies increased in value in the June quarter.
The fall came despite the listing of The Lottery Corporation with its $10 billion market value. It was created from the demerger of Tabcorp’s Keno and lotteries business.
“This new entry to the Index resulted in a significant shift in the composition of the Index, with the consumer sector now accounting for 31.2 per cent of the total market capitalisation of Queensland-listed companies at 30 June 2022 (versus 24.8 per cent at 31 March 2022),” the Deloitte report said.
The energy and resources sector accounted for 23 per cent of the index in the June quarter, down from 27 per cent in the March quarter.
The state’s mergers and acquisitions have fallen away and were now down 39 per cent from the highs in the 2021 second quarter.
“With inflation on the rise and monetary policy tightening, Queenslanders are starting to feel the bite from both sides,” the report said.
“A strong labour market and increased government spending helps to curb some of the pain, however, the Queensland and new Federal government have a big task ahead of them to ease the impacts of a higher cost of living and maintain stability.”
It said that while Queensland’s economy had “somewhat faltered” in comparison to other states and territories, it was largely a result of the Queensland floods and shortages in commodities and labour which have led to reduced dwelling construction.
Deloitte said the Queensland Government’s hike in coal royalties “resulted in a significant pullback across Queensland mining stocks”. That had followed a period of considerable growth for the Queensland energy and resources sector in the first half of 2022.
The performer for the second quarter were Austral Resources (up 209 per cent), Hawsons Iron (up 92 per cent) and Anteris Technologies (up 72 per cent).
Australian Agriculture had the biggest jump in dollar terms during the quarter. Its market cap rose by $319 million.
Suncorp remains the biggest company with a market capitalisation of $13.8 billion at the end of the quarter.
